It will be the second time in two years that Councillor George Dunning, the leader of Redcar and Cleveland Council, has rejected a big increase in the special responsibility allowance paid to him as leader of the authority.

His special responsibility allowance - £12,890 - is by far the lowest of the leading elected representatives in any of the Tees Valley town halls.

Redcar and Cleveland Council’s independent remuneration panel is recommending the full council to increase the special responsibility allowance of the leader by £8,700 spread across two years.

It would mean that next year the leader of Redcar and Cleveland would get a special responsibility allowance of £17,240 plus the basic allowance paid to all 59 councillors of £9,550 - a total of £26,790.

But Cllr Dunning told the Gazette he would not be accepting the rise in the coming year. He would be asking that the rise should be deferred.

Last year Cllr Dunning also rejected a rise of over £7,000.

“In the light of the current economic situation I am saying that this proposed increase should be deferred.

“On both sides of the Trunk Road - in the chemical and steel industries - jobs are being lost.

“I will not take the increase.

“I do appreciate the fact the leader’s allowance is some way behind the rest of the Tees Valley and that is why I am saying a deferment is the correct thing to do.”

The Remuneration Panel is also recommending there should be no increase in the basic allowance paid to all councillors and in the special responsibility allowances paid to other councillors with particular positions in the authority.

Cllr Dunning said he supported that view given that the indications were that local government workers may get no pay rise in the coming year.

In its report on councillors’ allowances in Redcar and Cleveland the independent remuneration panel said: “The panel noted, on the evidence brought before it, that the position of leader was a full time position and felt that the allowances should reflect this.

“Both the leader and the Council had decided not to accept the recommendations of the panel in 2009/10 to increase the leader’s allowance.

"The panel felt that whilst the suggested increase was undoubtedly declined with the very best of motives, the cumulative effect of such a continued stance would be the special responsibility allowance would lag behind where it might otherwise be.”

In Stockton the council leader - currently Councillor Ken Lupton - is paid a basic allowance and special responsibility allowance totalling £30,960 and in Darlington the allowance of the leader, Councillor John Williams, also totals £30,960.